When designer Phillip Lim launched 3.1 Phillip Lim in 2005 with business partner Wen Zhou, he wanted to offer designer fashion at more reasonable prices.

Indeed, 3.1 Phillip Lim items usually cost between US$300 and US$900 — nowhere near the prices charged by designers such as Michael Kors and Proenza Schouler. Manufacturing costs are kept low, often thanks to well-established relationships with Chinese factories.